Suppose that an individual's utility of money function is U = 0.65M ^0.75. This individual can best be described as risk: A) Indifferent. B) Averse. C) Neutral. D) Loving. E) None of the above.

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The utility function U = 0.65M^0.75 suggests that the individual's utility increases with money, M, but at a decreasing rate since the exponent on M is less than 1 (0.75). This characteristic is indicative of risk aversion, as the individual values each additional unit of money less than the previous one, which is a hallmark of risk-averse behavior.

Suppose That an Individual's Utility of Money Function Is U